Supreme Court Affirms State Medicaid Eligibility Rules

The Supreme Court on Wednesday upheld the way Wisconsin and about 30 other states calculate Medicaid eligibility for nursing home residents.

Justices ruled that states can use a formula that takes into account the incomes of a nursing home resident and a spouse who still lives at home.

The 6-3 decision is a defeat for nursing home residents such as 78-year-old Irene Blumer, who was turned down for government assistance. She argued that her 82-year-old husband, Burnett, would have to spend his savings before she could qualify for Medicaid.

Wisconsin had argued that without the rules, couples could shelter assets.

The Supreme Court, in a decision written by Justice Ruth Bader Ginsburg, ruled that the state law does not conflict with a federal law designed to prevent spouses of nursing home residents from becoming paupers.

The case is Wisconsin Department of Health and Family Services v. Blumer, 00-952.